Goodman Fielder (GFF)

Brokers have slashed profit forecasts for
Goodman Fielder
after the breads and spreads maker announced another $260 million to $275 million in asset impairment charges and restructuring costs. JPMorgan is forecasting a $148.9 million bottom-line loss for 2012 and has cut 2013 and 2014 earnings per share forecasts by 12 per cent, saying rapidly rising commodity prices raise the risk of further margin compression. Deutsche is forecasting a $160 million loss for 2012, compared with a previous profit forecast of $71 million, but expects profits to rebound in 2013. Merrill Lynch said the goodwill write-downs in baking and home ingredients suggest future earnings expectations are lower than they were six months ago, when the assets were last tested for impairment. The write-downs have also undermined Goodman’s balance sheet, increasing pressure on the company to sell its fats and oils and New Zealand milling assets.